The following is an aggregate plan. The following are the requirements and other data for the...
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The following is an aggregate plan. The following are the requirements and other data for the upcoming 6 months. Demand levels are: M1 3300, M2 2700, M3 2550, M4 2010, M5 2950, M6 3400 Previous quarter's output is 2250. Beginning inventory is 550 units. The organizations policy is not to backorder. Given that policy, if the item is not in stock, then the company will incur an average lost sales cost of $257.50. Inventory holding cost is $55.65. If the organization needs to hire workers (each worker provides 4 units of capacity) the cost will be $480 per every 4 units (or worker), and laying off workers will be $720 per every worker (or 4 units). Regular time production is $125.00 per unit, Overtime is $63.00 extra. If the company decided to work O.T. then, based on internal cost and safety goals will only be able to utilize 300 units per month. The subcontractor that the organization utilizes costs $215.00 per unit, with having a capacity level of being able to provide up to 400 units per month a. Produce utilizing a chase strategy by producing the demand or each month by varying the workforce. What is the overall cost of the plan? [Select] b. How many units did you decrease (layoff) during the 6-month planning period, and what was the cost? [Select] The following is an aggregate plan. The following are the requirements and other data for the upcoming 6 months. Demand levels are: M1 3300, M2 2700, M3 2550, M4 2010, M5 2950, M6 3400 Previous quarter's output is 2250. Beginning inventory is 550 units. The organizations policy is not to backorder. Given that policy, if the item is not in stock, then the company will incur an average lost sales cost of $257.50. Inventory holding cost is $55.65. If the organization needs to hire workers (each worker provides 4 units of capacity) the cost will be $480 per every 4 units (or worker), and laying off workers will be $720 per every worker (or 4 units). Regular time production is $125.00 per unit, Overtime is $63.00 extra. If the company decided to work O.T. then, based on internal cost and safety goals will only be able to utilize 300 units per month. The subcontractor that the organization utilizes costs $215.00 per unit, with having a capacity level of being able to provide up to 400 units per month a. Produce utilizing a chase strategy by producing the demand or each month by varying the workforce. What is the overall cost of the plan? [Select] b. How many units did you decrease (layoff) during the 6-month planning period, and what was the cost? [Select]
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To calculate the overall cost of the plan using a chase strategy determine the production quantities ... View the full answer
Related Book For
Analysis and Design of Analog Integrated Circuits
ISBN: 978-0470245996
5th edition
Authors: Paul R. Gray, ? Paul J. Hurst Stephen H. Lewis, ? Robert G. Meyer
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